ECCB 2017-2018 Annual Report and Statement of Accounts

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ECCB ANNUAL REPORT 2017/2018

Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2018

22. Related party balances and transactions … continued The year end balances arising from transacting with participating governments are as follows: 2018 $ 2017 $ Receivables from participating governments Loans and receivables: participating governments’ securities (note 9) 83,189,928 73,334,339 Loans and receivables: participating governments’ advances (note 10) 43,330,371 40,496,304

Payables to participating governments (note 16) Participating governments’ call accounts Participating governments’ fiscal reserve tranche II Participating governments’ operating accounts Participating governments’ sinking fund call accounts Participating governments’ fiscal tranche I call accounts Participating governments’ drug service accounts Participating governments’ debt restructuring escrow accounts

130,222,853 64,241,922 57,609,555 15,595,139 6,869,358 6,100,623 59,635,812

184,250,591 51,292,706 48,073,159 9,232,393 8,012,380 4,600,762

59,618,256 Interest income earned on receivables during the year was $6,791,457 (2017: $6,220,772). The receivables carry interest rates of 3.5% to 9% (2017: 3.5% to 9%) per annum. Interest expense on payables during the year was $2,538,217 (2017: $581,671). The payables carry interest rates of 0.67% to 1.40% (2017: 0.19% to 0.51%) per annum. A number of transactions were entered into with related parties in the normal course of business. These include loans and other transactions. The volume of related party transactions and outstanding balances at the year-end are as follows: 2018 $ 2017 $ Staff mortgage loans Loans outstanding at beginning of year 284,570 374,963 Loans movement during the year (82,087) (90,393) Loans outstanding at end of year 202,483 284,570 Term deposits Bank of Nova Scotia, St. Kitts 519,185 566,802 CIBC FirstCaribbean International, St Kitts 245,842 613,063 765,027 1,179,865 The term deposit balance represents amounts pledged as liquidity support for loans issued by Scotiabank, St. Kitts and CIBC FirstCaribbean International, St Kitts to ECCB eligible employees (note 6).